Bank Of America Has No Problem Modifying Your Loan If You Promise To Keep Your Mouth Shut About It

Bank of America is willing to go to some
shady lengths to keep its customers hush hush about its lending
practices.

The Arizona Attorney General's office uncovered details of 12
cases in which the bank agreed to waive thousands of dollars in
missed payments and modify mortgage loans in exchange for
borrowers' silence, as reported
by Businessweek.

Prosecutors came across the settlements as part of an ongoing
investigation into the bank's loan modification practices.

In one case, the bank waived more than $250,000 in defaulted
mortgage payments. The bank also modified the borrower's loan to
40 years with a low two percent interest rate.

The catch: BoA made the homeowners agree to refrain from
bad-mouthing the bank in the future.

In one document, BoA requested that the borrower "remove
and delete any online statements regarding this dispute,
including, without limitation, postings on Facebook, Twitter and similar websites," Businessweek
said.

And two weeks ago, the bank was fingered in a New York Attorney's
General probe of lenders who alleged overcharged customers for force-place
insurance.

Bank of America did not return a request for comment at press
time.

Update 12:29 p.m.

Bank of America spokesperson Jumana Bauwens released the
following statement in response to our request for comment:

"We do not include non-disparage or confidentiality
language in our standard loan modification agreements. In
legal settlement agreements, the parties sometimes will agree to
non-disparage and confidentiality language and do so on a
case-by-case basis based on the negotiated resolution of the
claims."